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The Rotten-Kid Theorem Meets the Samaritan's Dilemma

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  • Neil Bruce

    (Queens University)

  • Michael Waldman

    (UCLA)

Abstract

A familiar result in the economic theory of the family is Becker's rotten-kid theorem. This theorem states that altruism by a family member will lead other selfish members to act efficiently from the family viewpoint. We extend Becker's one-period model to two periods and show that parental altruism can result in an inefficiency known in other contexts as the Samaritan's dilemma. Implications of this for transfer arrangements within the family and for the Ricardian equivalence theorem are drawn.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Neil Bruce & Michael Waldman, 1986. "The Rotten-Kid Theorem Meets the Samaritan's Dilemma," UCLA Economics Working Papers 402, UCLA Department of Economics.
  • Handle: RePEc:cla:uclawp:402
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    File URL: http://www.econ.ucla.edu/workingpapers/wp402.pdf
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    References listed on IDEAS

    as
    1. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    2. Hirshleifer, Jack, 1977. "Shakespeare vs. Becker on Altruism: The Importance of Having the Last Word," Journal of Economic Literature, American Economic Association, vol. 15(2), pages 500-502, June.
    3. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 151-182, July.
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